U.S. stock futures up as CIT said to get rescue

LONDON (MarketWatch) -- U.S. stock futures advanced Monday after the lender CIT Group was reported to have received a private sector bailout, removing one threat to the recovery at the onset of a heavy week for earnings.

Upbeat results and outlooks from the likes of Goldman Sachs and Intel helped push the S&P 500 7% higher last week.

Through July 17, 71% of the 55 S&P 500 components that have reported results have beaten expectations, 9% have matched them and 20% have missed, according to data compiled by Thomson Reuters.

Technically, the S&P 500 rallied after it failed to break through support around 875 and 880, according to Mary Ann Bartels, an analyst at Merrill Lynch. Bartels said technology is leading the rally and may lead the market longer term.

Markets took relief from an apparent rescue deal for the CIT Group
CIT, +2.08%
that will see the lender to small- and medium-sized firms receive $3 billion in financing.

"As easier finance conditions continue to create their own positive momentum for financial valuations, the news that CIT has secured financing to prevent bankruptcy will consolidate investor perceptions that systemic risks in the global financial system are contained," said Lena Komileva, head of G7 market economics at Tullett Prebon.

CIT shares shot up 84% in pre-market action.

Reporting on Monday, Hasbro
HAS, -1.56%
said second-quarter profit rose 5%, beating its earnings-per-share estimate by two cents. The toy maker also reduced its cost estimates for a joint venture, helping the stock rise by close to 5% in pre-market trade.

Weatherford
WFT, -0.84%
however lost over 7% after missing estimates as its profit dropped sharply.

Another stock that may garner attention on Monday is Human Genome Sciences
HGSI
In a statement with GlaxoSmithKline
GSK, -0.34%
the company said a drug they are developing against lupus met its primary endpoint in the first of two Phase 3 clinical trials. It's reportedly the first success in decades in the fight against lupus. Shares of Human Genome soared 229%, while Glaxo rose 4%.

The economics calendar is light on Monday, with leading economic indicators for June due at 10 a.m. Eastern.

Japanese markets were shut for the Marine Day holiday. In Hong Kong, the Hang Seng rallied 3.7%.

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